Timber Trouble: Counties have options for timber harvest formula

Oct. 21, 2013

Revenue from timber harvests in the Chequamegon-Nicolet National Forest support 11 counties in Wisconsin, but the funding formulas continue to fluctuate.

Gannett Wisconsin Media’s three-day “Timber Trouble” report into the management, economics and politics of the national forest referenced the “25 percent fund” that has traditionally pushed federal forest revenue to local schools and counties.

A reader from Montana wrote to question the claim, since a 2000 federal law change shifted some of those funds. It’s complicated, but here’s how it works now:

For decades, 25 percent of the forest’s revenue was funneled to schools in the rural communities. In 2000, the Secure and Rural Schools Act augmented the program so counties can choose to remain in the 25 percent program, or take a more stable guaranteed payment. A majority of counties across the nation have opted for the new model.

As of last year, nine of the 11 Wisconsin counties within the Chequamegon-Nicolet National Forest took the “guaranteed” formula. That meant inflows of more than $520,000 to Forest County in 2012, for instance. The figure would have been a lower number, in the $400,000 range, with the 25 percent calculation.

“Traditionally, the counties used the 25 percent fund, but smaller harvests have changed that,” said Jane Severt, executive director of the Wisconsin County Forests Association. “The counties would be a lot better off if the forests were harvesting more acreage.”

Rickard Hokans, regional economist for the U.S. Forest Service, said the 25 percent option has remained, which is preferred in regions with profitable timber production.

“We provide projections based on total forest receipts and the counties can chose which model is best,” Hokans said.

A new state budget provision, pushed by Rep. Jeff Mursau, R-Crivitz, and Rep. Rob Swearingen, R-Rhinelander, will direct the federal payments straight to school districts. In the past, townships received the money and traditionally passed it to schools.

For details about county forestry funding, go online to headwaterseconomics.org, the digital home of Headwaters Economics, a nonprofit research group in Montana that tracks the changes.